Sure, but that only works if countries' laws find that acceptable. If China says that you have to delete something from US users if you want to do business in China, they have every legal right to do so: As the sovereign ruler of the land, they decide who does business there, and they can set any requirement they see fit.

So Balkanized rulesets might work for some countries but not others. China is well known for exercising their market size to make companies jump for them, the US is as well.